Which One of the Following Is Not a Reason Why

question 38

Multiple Choice

Which one of the following is not a reason why executive compensation is a complicated governance mechanism?

• A)A number of other factors affect a firm's performance besides top-level managerial decisions and behaviour.Unpredictable economic, social or legal changes make it difficult to discern the effects of strategic decisions.
• B)The strategic decisions made by top-level managers are typically complex and non-routine, so direct supervision of executives is inappropriate for judging the quality of their decisions.
• C)An executive's decision often affects a firm's financial outcomes over an extended period, making it difficult to assess the effect of current decisions on the corporation's performance.
• D)The market for quality top executives is strong and sometimes firms have to go out of their way to retain talented top executives.

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Definitions:

Side Effects

Unintended consequences or reactions caused by the use of a product, action, or medical treatment.

Buying Decision

The process by which a consumer or business evaluates and chooses to purchase a product or service.

Correct Buying Decision

An informed and well-considered decision made by a buyer that optimally fulfills their needs, preferences, and budget.

Product in Stock

Refers to items or merchandise that are available for immediate sale and delivery, stored in a vendor's inventory.